U.S. Critical Minerals Leader Positions to Counter Chinese Rare Earth Export Controls

• Energy Fuels has developed the technology required to produce six of the seven rare earth oxides now subject to Chinese export controls, potentially filling a critical gap in U.S. supply chains.
• The company's White Mesa Mill in Utah currently has commercial capacity to process monazite ore concentrates into neodymium-praseodymium oxide, with plans to expand production to include samarium, gadolinium, dysprosium, terbium, lutetium, and yttrium oxides.
• President Trump's recent Executive Order initiating a Section 232 investigation on imports of processed critical minerals potentially strengthens Energy Fuels' market position as a domestic producer of rare earth, uranium, and vanadium oxides.
• Energy Fuels has secured its own supply chain through the acquisition of three large-scale heavy mineral sands mines in the Southern Hemisphere, projected to supply monazite concentrates to the White Mesa Mill for decades.
• The company plans to increase its processing capacity from the current 10,000 tonnes of monazite per year (producing up to 1,000 tonnes of NdPr oxide) to 60,000 tonnes annually in the coming years, significantly expanding its rare earth oxide production potential.

Energy Fuels Inc. (AMEX:UUUU) is a leading U.S.-based critical minerals company focused on uranium, rare earth elements, heavy mineral sands, vanadium, and medical isotopes. The company owns and operates several conventional and in-situ recovery uranium projects in the western United States and has been the leading U.S. producer of natural uranium concentrate for the past several years. Energy Fuels also owns the White Mesa Mill in Utah, the only fully licensed and operating conventional uranium processing facility in the United States, where it produces advanced rare earth element products and vanadium oxide when market conditions warrant. The company is now strategically positioned at the forefront of U.S. efforts to counter China's recent export controls on rare earth elements, offering investors exposure to critical mineral supply chains that are increasingly vital to national security and the green energy transition.

Rising U.S.-China Trade Tensions

Energy Fuels has successfully developed the technology it believes is required to produce six of the seven rare earth oxides now subject to newly enacted Chinese export controls. This development comes at a critical juncture in U.S.-China trade relations, as tensions continue to increase over control of critical mineral supply chains.

The timing of Energy Fuels' announcement is particularly significant, coming just days after President Trump signed an Executive Order on April 15, 2025, entitled Ensuring National Security and Economic Resilience Through Section 232 Actions on Processed Critical Minerals and Derivative Products. This order directs Commerce Secretary Howard Lutnick to initiate an investigation under Section 232 of the Trade Expansion Act of 1962 to evaluate the effects on national security of imports of processed critical minerals and their derivative products, including the rare earth, uranium, and vanadium oxides that Energy Fuels produces domestically.

In a press release, Mark S. Chalmers, President and CEO of Energy Fuels, emphasized the company's unique position to address the concerns highlighted in the Executive Order:

"Energy Fuels is uniquely positioned to quickly help fill many of the gaps President Trump identifies in his Critical Mineral Executive Order. We have a long history of producing uranium and vanadium oxides at our White Mesa Mill in Utah, and last year we successfully launched commercial rare earth processing capacity at the Mill, showing the world that our technology and infrastructure works at scale."

Technical Capabilities and Production Expansion

Energy Fuels has been developing rare earth element production capabilities at its White Mesa Mill since 2020. The company began performing lab- and pilot-scale REE separations in 2021 and commissioned commercial-scale NdPr separation in 2024, with a capacity of up to 1,000 tonnes per year of NdPr.

Through this work, Energy Fuels has accumulated significant real-time data, experience, and technical knowledge applicable to separating rare earth oxides, including the mid and heavy oxides now subject to Chinese export controls. Based on this expertise, the company believes it is technically capable of designing, constructing, and operating the solvent extraction circuits and performing all necessary hydrometallurgical steps to conduct REE separations to applicable specifications at scale.

The rare earth oxides Energy Fuels is targeting include Samarium (Sm), Gadolinium (Gd), Dysprosium (Dy), Terbium (Tb), Lutetium (Lu), and Yttrium (Y).

With appropriate government support, the company believes it could bring this expanded production capability online within as early as twelve months.

Monazite: A Strategic Mineral Resource

Energy Fuels' rare earth strategy centers on monazite, a mineral with what the company considers superior rare earth element content compared to other sources. According to the company, monazite offers several advantages:

1. Excellent distributions of "light," "mid," and "heavy" rare earth oxides compared to other REE minerals
2. Currently produced as a low-cost byproduct of heavy mineral sands (HMS) mines located in the U.S. and allied nations
3. Typically contains high-grade concentrations with approximately 55% total rare earth oxides (TREO), including 14% concentrations of the "heavy" (Sm+) REE oxides (on a %TREO basis)

Since 2021, Energy Fuels has purchased monazite concentrates from heavy mineral sands mines owned by The Chemours Company in Florida and Georgia. The company has also taken steps to secure its own supply by acquiring three large-scale HMS mines in the Southern Hemisphere during 2023 and 2024. According to Energy Fuels, these mines are capable of supplying large quantities of monazite concentrates to the White Mesa Mill for processing into rare earth oxides for decades.

Current and Projected Production Capacity

Energy Fuels currently has the commercial capacity to process up to 10,000 tonnes of monazite concentrate annually, producing up to 1,000 tonnes of NdPr oxide per year, along with a "heavy," Sm+ concentrate at the White Mesa Mill. Looking ahead, the company has ambitious expansion plans, expecting to increase its capacity to process 60,000 tonnes of monazite per year in the coming years.

The company is updating its 2024 prefeasibility study to a feasibility study on the planned expansion of REE processing at the White Mesa Mill. The potential production capabilities under both the current and expanded scenarios are substantial, as shown in the following table:

This expanded capacity would allow Energy Fuels to significantly increase its production of rare earth oxides now subject to Chinese export controls, potentially filling a critical gap in U.S. supply chains for these strategic materials.

Debra Bennethum, Director, Critical Minerals & Strategic Supply Chain

National Security Implications and Government Support

While Energy Fuels has secured what it describes as 'world-class HMS projects' expected to supply monazite to the White Mesa Mill for decades, these properties are in various stages of exploration, permitting, and development. Production from these sites is expected to begin around 2028, subject to receipt of all permits, government approvals, financing, and development.

The company acknowledges that processing at the White Mesa Mill prior to 2028 will require purchases of monazite from third parties, which cannot be guaranteed. This represents a potential risk factor for investors to consider when evaluating the company's near-term production capabilities.

Chalmers highlighted the company's achievements and capabilities in this area:

"We now have the data, knowledge and much of the infrastructure in place to produce 'light', 'mid' and 'heavy' rare earth oxides at scale at the White Mesa Mill. We encourage the U.S. government to showcase its commitment to American rare earth manufacturing with focused support to proven companies like Energy Fuels that have made significant investments in the critical mineral space and demonstrated their ability to commercially produce the critical minerals our country needs."

The recent Executive Order signed by President Trump initiating a Section 232 investigation into imports of processed critical minerals underscores the national security implications of rare earth supply chains. Energy Fuels believes this action has the strong potential to strengthen domestic supply chains for critical minerals and enable increased domestic production with well-designed trade remedies and price support.

Energy Fuels positions itself as one of the only U.S. companies capable of delivering on President Trump's executive order in the relative short term for critical elements including rare earths, uranium, and vanadium. This potential government support could be a significant catalyst for the company's growth and profitability in the coming years.

Conclusion for Investors

For investors considering Energy Fuels as an investment opportunity, several factors are worth noting:

1. Strategic Position: Energy Fuels occupies a unique position in the U.S. critical minerals landscape, with capabilities spanning uranium, rare earth elements, vanadium, and potentially medical isotopes.
2. Government Policy Tailwinds: Recent policy actions, including the Section 232 investigation, suggest increasing U.S. government support for domestic critical mineral production, which could benefit Energy Fuels.
3. Technical Capabilities: The company has demonstrated technical expertise in rare earth processing, having already achieved commercial-scale production of NdPr oxide.
4. Vertical Integration: Through acquisitions of heavy mineral sands projects, Energy Fuels is moving toward vertical integration in its rare earth supply chain, potentially reducing reliance on third-party suppliers.
5. Expansion Plans: The company's plans to increase processing capacity from 10,000 to 60,000 tonnes of monazite annually represent significant growth potential if successfully implemented.
6. Supply Risk: Near-term processing at the White Mesa Mill will require purchases of monazite from third parties until the company's own mineral sands projects come online around 2028, introducing supply uncertainty.
7. Government Support Dependency: The timeline for expanded rare earth oxide production is contingent on "appropriate U.S. government support and/or market conditions," indicating dependency on factors outside the company's direct control.

Energy Fuels stands at a pivotal juncture in the U.S. critical minerals landscape, positioned to potentially fill significant gaps in domestic supply chains for rare earth oxides now subject to Chinese export controls. The company's established infrastructure at the White Mesa Mill, technical expertise in rare earth processing, and steps toward supply chain vertical integration provide a foundation for potential growth. With favorable government policies potentially providing additional tailwinds, Energy Fuels offers investors exposure to critical mineral markets increasingly important to national security and clean energy transitions. However, investors should carefully weigh the company's near-term supply dependencies and the execution risks associated with its ambitious expansion plans against these potential opportunities.